If you’re in the business of flipping houses, you’re in it to make money.  So the thought of adding a home warranty to your expense budget may seem ludicrous.  Well, I’m here to offer a different perspective. In fact, I’m not the only person who thinks this is a great idea.  (Check out this blog post on Bigger Pockets after you finish reading mines.)


First and foremost, buying a home is a big deal, especially for first time home buyers.  Most first time home buyers are use to maintenance free living. Therefore, unexpected maintenance expenses tend to be a concern for prospective buyers.  A home warranty, reassures them they will be covered for at least their first year of homeownership. This sense of relief makes the decision process easier.


Another reason to invest in a home warranty is to be more competitive in the marketplace.  It’s not unusual to see multiple homes for sale on the same street. When this is the case, you’re competing based on the features of the home.  And in some communities, the homes are almost identical. So in order to stand out, you want to offer something that other sellers are not. Having the competitive edge is also important if your flip is competing with newer homes in same price range.


Lastly, you want to protect your reputation as a real estate investor.  In spite of taking the proper precautions, stuff happens. If the new homeowner experiences an unexpected maintenance issue, the home warranty is there for added protection.  Without it, the situation could turn ugly and adversely affect your reputation in the community. When you think of all that’s on the line, I believe the expense is justified. The question is, do you?  


If you want to know which home warranty companies I recommend, download my app and check out the HomeKeepr section.